My landlord defaulted on their mortgage. Now the bank wants to foreclose. What does that mean for me?

As a tenant in a property under foreclosure, your concern is understandable. BC law says that the contract between your landlord and the mortgagee (in this case, the bank) takes precedence over your tenancy agreement. So it’s important to keep up to speed on the foreclosure proceedings, as you’ll be affected by the outcome.

Under the law, as a renter, if you’re named as a respondent in a petition for foreclosure, you must comply with any orders the court makes. For example, you’ll need to move out by the possession date in any sale the court approves. Importantly, the notice periods in BC’s residential tenancy laws wouldn’t apply in this situation. 

Steps you can take

Read the foreclosure documents carefully. Look for the length of the redemption period. This is the period of time in which your landlord can pay off (redeem) the mortgage and avoid foreclosure.

You may also consider filing a response to petition (here’s the form). Doing this ensures you’ll receive any documents filed in court and be kept up to speed on the foreclosure proceedings. You have to file a response within 21 days of receiving the petition.

If you’re facing eviction, you have options. To delay your eviction date, you can attend the court hearing and explain to the judge why you need more time. You could also reach out to the bank’s lawyer directly to ask for an extension. You may be able to avoid eviction altogether if the new owner of the property agrees to let you stay in the rental unit. This would require a fresh tenancy agreement.